Kazakhstan Temir Joly and Uzbekistan Temir Yollari Discuss Increasing Cargo Transit

Kazakhstan Temir Joly (KTZ) and Uzbekistan Temir Yollari have held talks on increasing cargo transit between the two countries, focusing on simplifying grain exports, Orda.kz reports.

According to KTZ, a key outcome of the negotiations is Uzbekistan’s decision to reduce the tariff on Kazakhstan's grain transit to Afghanistan by 40%. This means it will now be more cost-effective to ship grain to Afghanistan than, for example, to Iran — a shift expected to benefit Kazakhstan's exporters and enhance the competitiveness of their products.

The agreement was reached during Uzbek President Shavkat Mirziyoyev’s recent visit to Almaty.

Kazakhstan’s grain exports have seen notable growth over the past six months, with 5.8 million tons shipped — a 53% increase compared to the same period last year:

• 3.2 million tons (+33%) to Central Asia
  
• 248,000 tons (+36%) to Afghanistan
  
• 660,000 tons — 17 times more than last year — to Iran
  
• 360,000 tons — 90 times more — to Azerbaijan

KTZ noted that while there are currently enough wagons to meet grain transport demand, loading volumes have slowed temporarily due to the March holidays. Shippers are encouraged to use routes where transportation costs are subsidized by the state, such as to Russian and Baltic ports.

The infrastructure, locomotives, and wagons are available — what matters is the timely submission of shipping requests, the company emphasized.

Increased market access and reduced transit tariffs are helping agricultural producers boost export volumes and profitability. This is especially important for Kazakhstan amid volatile global grain prices and rising international competition. 

Original Author: Alina Pak